How do I deal with invoice overpayments received?

From time to time, you may receive an overpayment for an amount due on an invoice. This may be because of an administrative error by one of your customers, or perhaps you revised and reduced your invoiced total after payment was made. Whatever the reason, your customer has made an overpayment and this now needs to 'sit' on their account for them, either until a further invoice is created, or until you arrange a refund. You can account for this easily in ExpensePlus:

1. In the bank matching screen, match the income by clicking on the transaction, selecting the + button that appears, and then in the popup select the Mixed Income option. Allocate the invoice payment in the Invoice Payment section, and record the invoice overpayment in the Other Income section.

2. Then, in the Invoicing screen, find the customer that the overpayment relates to, and create a Credit Note on their account for the amount of the overpayment, selecting the same category you coded the overpayment to above.

You then have two choices: to repay the customer or to leave the credit note and use this to offset a future invoice to this customer. Further details of both options are covered in this separate help guide article.

To better understand the Bank Reconciliation module, please view the module overview video here.